contingent is ahead but betting is still on stage. a lot of times the money is where the action is. it is monday, june 13. "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box." >> good morning, everyone. welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. we'll have more on the terror in orlando in just a minute. check out the u.s. equity futures. for some red arrows. the down futures are indicated down by 47 points. the s&p futures down by 7.5. the nasdaq down by 14. the blood letting was worse in asia with the nikkei down 3.5%. that was a decline of 582 points. this comes as the japanese yen

was hit pretty hard. this was something that happened, you saw the yen was going to its highest level as the riskier assets took on hammering ahead of the key central bank. it is not just the u.s. central bank meeting this week but the bank of japan, the bank of england and the swiss national bank. take a look at shanghai composite down by 3%. the hang seng down by 2.5%. in germany this morning, the dax is down by 1% with similar declines at the cac and france. and we'll look at crude oil, this morning's crude oil down by 1% to 48.57. ice, brent crude, down by 50 cents to $50.14. back to the top story, terror in orlando. 50 people are dead and 53 injured in the worst shooting in u.s. history. authorities in orlando have identified 21 victims so far. the gunman is 29-year-old omar

mate mateen, a u.s. citizen. we'll go to eamon javers with more on this investigation going on. >> reporter: good morning. an absolutely devastating tragedy here in orlando, florida, yesterday. we are here at the orlando regional medical center, a level one trauma medical facility a couple blocks down from the pulse nightclub in this direction. this facility was well positioned to handle all the gunshot wounds they saw coming in yesterday. a lot of the families here have had a very tough night overnight as they wait for the results of some of these injuries and some of the surgeries going on in the building behind us. and what we know of the timeline yesterday is still sketchy. we'll be getting more details from the investigators today and throughout the afternoon today. but here's the timeline as we know so far. at about 2:00 a.m. saturday night into sunday morning the killer, omar mateen, entered the pulse gay nightclub here in

orlando. by 2:10, the managers of the pulse nightclub managed to post to their facebook page telling people to run from the facility, simply to escape with their lives. and by 5:00 a.m., mateen had holed up the club with a number of survivors who were all hidden in various places inside the club. effectively, those people became hostages. the police decided they simply had to go in to end the situation, to stop the killing. they stormed the building. they killed mateen on the site there. so the casualties as we know right now, 50 dead. 53 wounded. the bodies were being removed overnight with families notified. they have released the names of 21 victims so far. but more tragic news on that front still to come throughout the day today. back in washington, president obama once again addressing the nation in the wake of a mass shooting. here's what he said. >> this could have been any one of our communities.

so i told mayor dyer that whatever help he and the people of orlando need, they are going to get it. as a country, we will be there for the people of orlando today, tomorrow and for all the days to come. >> reporter: and guys, i want to share with you a picture that i took yesterday. this was a picture shot at the hampton inn near the medical center. that was the rallying point for so many families awaiting the fate of their loved ones. i was there as a lot of the families were getting the news that the people they loved and cared about were killed. and i have to tell you, it was just a devastating emotional scene as the families were getting this news. people in tears, shouting, crying, falling to the ground. and there were so many people there who were trying to help, the local church group, i spoke to some of the members there, they had showed up and were offering water. the first responders were there, police and fire were there, there were members of the clergy from all different faiths there.

everyone trying to help these families. there were hundreds of people in tears in that building yesterday. and there was just nothing that you could do or say to ease the pain. nothing you could do to make this not have happened. it did happen and it was devastating. and the emotional wreckage we saw yesterday is going to continue throughout the day and the weeks to come, guys. back over to you. >> all right, eamon. thank you for that report. we'll look at how the investigation will proceed. we have jim kavinar, a special agent for abc news law enforcement. anyone waking up today is probably overwhelmed with just the notion that a lone wolf and a soft target exists almost everywhere you turn, anywhere i look around here i see similar places. and it's daunting and overwhelming, the idea that we're going to have some way of stopping this. and it's very depressing.

>> yeah, it is very depressing. the crime yesterday was so vulgar. it's hard to come to grips with it for all of us, even law enforcement officers were shaken by what they saw down there. a madman just goes in there and just massacres and massacres people for nothing but hate and terror. no real reasons anybody can wrap their head around. so yes, i agree, it's real channeling as americans, but we can deal with it and do better on many fronts. but we're not going to be able to totally eliminate the virus that al qaeda has spread throughout the world. it started with bin laden who spread the virus into fighting in isis, al qaeda into iraq and isis or daesh. we have to get the political leaders to do something about it

but we'll be living with it. >> intelligence knew about this guy. still managed to get two gun licenses. and he worked for some time of a security firm, right? i'm reading that even the dhs that contracted this security firm for certain outsourcing, certain roles that it has. so the guy had more than a gun license, he had a security guy license. >> that's right. >> so -- he had been interviewed by the fbi, though, so who is not -- how come the information is not being exchanged among different agencies that this guy was someone to keep your eye on? >> well, it's exchanged but what happens is you get into this spot, you know, i had agents on half a dozen joint terrorism task forces. and a lot of names come up. you wouldn't believe the number of the names that come to the task forces. and what happens is you have to

look into them. here's a guy with no criminal record. so what happens is you wind up getting background on employment, maybe talking to associates. he's reported at saying violent things, for example. then agents interview him. but agents aren't the amazing randy. you can't always predict the future. you just have to get some of the facts from him, see what is going on. he hasn't committed a crime. you can't arrest him, you don't want to arrest him. so the file is closed. that's what happened the first time. the second time -- >> when you go to buy a gun, is that -- is that license, is that process connected at all? is there any watch list or -- forget about a watch list, does that information he's trying to buy the gun or has bought the gun get put back into some list that says we looked at this guy before, is there any connection or we're not there yet? >> no, andrew, you're just two steps ahead of my discussion. you're exactly right. what i was going to say is the second time he came to the

attention of the fbi, testifihe associate with a loosely known american with ties to syria. and then what happened a week ago, this is an important fact that you're getting to, the time of him getting the weapons is a week ago. and when that happened, he had to get a background check by the florida department of law enforcement to see if he had a criminal background. but law enforcement comes in to his name and we should be having the ability to, we could, i mean, this is information in the hands of all law enforcement, the fbi, joint terrorism task force, that name should hit from the background check and say, oh, by the way, a guy you were interested in a year or two ago is now buying an assault rifle and a pistol at the local gun store. now, you can't arrest him for that, andrew, but you're hitting on the point where we should be saying, hey, why is this guy buying a gun? and all this ammunition and all

this ammunition. so now, usual on the task forces, those things will go right to the fbi agents that are on the task force. the police, local police in that area where the guy lives, and we'll go out there and talk to him, look at him, what is he doing? and in this case, you know, in i believe he was in a repprental there are some mos that you see. >> over in belgium they tried that, they didn't have the money and got 300 people they are trying the watch, they need 24-hour surveillance. they don't have eight guys per person to watch. and same with us here, we don't have infinite resources and can't follow everyone 24 hours. so they quit following him a year ago or whatever. once you find out he's done this, start following him again. this is a high-priority guy that you go back to him. you don't need to follow him every day for the last three

years. but once he bias an assault rifle, you figure to go back to this guy. >> jim, where are the holes in doing what joe is saying? >> well, becky, i think we have to learn from each event. like when i was in the government, we hot washed every case. every case we had, a d.c. sniper or bombing, we would go back and hotwash him. what did we do right and what did we do wrong? we'll make new mistakes because we are human, but let's fix it. here's a glaring example, let's make sure that anybody that came to the interest of the joint terrorism task force for whatever reason, even if the fire is closed, if they buy a firearm and lots of ammunition to kill 50 people, shouldn't we know that? >> i guess my question is, how quickly could that be corrected? or the databases there? do we have this information or have a way of sinking it up

nationally? or is this a problem as every state does it a little different? >> no, florida does it through the department of law enforcement or it goes to the fbi, national up substantiate criminal check system in west virginia. so we have the data. the person comes to find the gun, he presents this and it goes to the department of law enforcement. we need to have the joint terrorism task force flag that and the lawmakers allow us to make all that stuff okay. so yeah, we are just telling you we interviewed this guy twice. you need to know that fdla. we are not going to arrest the guy. we just want to know, tell us that he's buying a gun today. and now we can take a week to dill 50 american citizens. yes, we can tighten that up through the process. >> you mentioned lawmakers need to do something.

there's a law that needs to be passed to allow that transfer of information at this point? >> well, no, i don't think a law needs to be passed but you get a lot of pushback whenever you do anything with ground background checks or from the congress to push it back, you're doing too much. violating the second-amendment rights, it's a general play to flag any kind of thing. because we have terrorists on the terrorism watch list who cannot fly an airplane because they are considered too dangero dangerous. we allow them to purchase guns because they are not legally barred from buying the gun under law. so they can't get on a plane because they are too dangerous but they can legal ly take them. >> when you try to buy a gun in this country, some places take a day and other places a year. >> well, they are trying to be a

national day on guns before the nic system was pushed by the nra and gun lobby because they didn't want a delay in purchase to the gun. a cooling off period, a waiting out period, nationally it was down to three or four days. some states have it and there's no way for the imperial system. the check goes in, and unless if you're cleared, you get to go instantly. if you are not cleared, in three days -- the laws are strong. we have to work within the framework just to find the ri t right -- >> the intention of people that want to do us harm, they are talking about chemical weapons, buy logical weapons, there's nail bombs, you can drive a car

into a crowd. the containment of isis is not a viable option to stop things and that you got to cut it out right at the source. i wonder, does that cause more extremist fervor? i have no idea what the proper course to take is. that's why i'm saying it is just so depressing to figure out what our options are. and you hear how many of these guys are supposedly hear right now? coomey said they are following people in every state, every state of the union they can sympathize with, right? >> right. we are not getting paid or attacked by isis soldiers coming from syria and iraq to america. i mean, this guy was post

humously. >> in europe they are citizens of their country, but they can go and get training and come back as a citizen of the country. that doesn't help or make me feel any better. >> reporter: right. this guy was born in america. we looked at people making this attack before, they are mostly american citizens. >> i would say they are isis-inspired at least. >> that is clearly the case. but what i am saying is an immigration stop is not going to keep it from happening. we don't want ifighters coming in.

we have to understand this, it is fighting the enemy in the theater, ramping up even the way we're doing it now, ramping up all that stuff. >> jim, i think we all agree, well, not everyone at the table agrees, but we have to do all of this. i'm just curious since we have touched own guns but not really, and i know this is a delicate issue, especially in washington these days, but the idea of automatic rifles or a semiautomatic gun, if you will, whether you think they are ultimately necessary. is there a reason for people to be able to buy the guns? and do they protect people? part of the argument people make over time is that people need to own guns to protect each other. it doesn't seem to be working if that is the case. >> right. well, you get down to the second amendment argument on both sides and it gets very heated in the court ruling on citizens rights

to guns. but the assaults weapon in the '90s, it said all the guns out there were legally possessed and we continue to be so. but new guns manufactured in this configuration, would not be allowed to be bought except by the police. there's a lot of flaws in that law because most of the changes were cosmetic, but the one thing that made a difference was the magazine's complexity. so commercially you could only buy a magazine with ten rounds. so we saw during the ten years of the assault weapons ban, that is starting to have an effect as the years went by. because all magazines weren't confiscated or anything, but it was just that guns couldn't be sold anymore by dealers with 30 rounds, 60 rounds, 100-round drums over the counter no

problem. but you could only buy and the-round magazine. so this guy -- >> a handgun, the magazine, isn't that caused by an assault weapon, too? i think people are -- they look at the long guns and believe it is a military -- they can flank automatic and semiautomatic and say that they are military weapons, but it is no different than the glock that an officer carri carries. >> you're right. >> it's a long gun? >> no. the long gun has a much higher velocity. so the killing power of that is so much more than a handgun. maybe to a lot of people the handgun that the assailant used

in the movie theater, but it is just -- they are much more deadly. when police go up against a person with a militarmilitary-s rifle, he's already losing in the gunfight. there are issues there. but it's a semiautomatic rifle no matter how you change the cosmetics of it. but the magazine compares the -- that is something that had some effect. >> you can get -- >> there is no maximum. >> they can be that long? >> you can have a gun with a belt fit with a 100-round drum and tape two 30s upside down. get whatever you want. >> modify it, yeah. you can strap them all over you, but with the ten-round, there

was dexterity to change it. you can do it in a second or two, but this guy would have to be changing managazines instead. instead of the ultimate change, the issues are dead politically. it is one fight but we also have to fight isis in the theater and ramp up the special ops. we have done better and the president has done better on the internet fight. but he's still got to do better. when we return, the price of crude is slipping once against. we'll open up the market discussion next. plus, much more on the orlando shooting including the reaction from the campaign trail. "squawk box" will be back in just a moment. ♪

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welcome back. we'll check on the markets again this morning. we have seen red arrows with the futures here down by close to 50 points. the dow futures down 46 points right now. the s&p futures off eight. nasdaq down 15. in europe additional losses. the dax is down by 1 1/3 percent. the oil prices have also been giving back this morning, too. you can see that wti right now down by over 1% to 48.51. joining us right now is john

killduff, partner at again capital. peter, let's start off talking about the markets in japan. we saw bigger losses with the nikkei down 3.5%. concerns that a brexit vote to exit is looking more and more likely according to some of the polls that are taking place there. what do you do as an investor? >> well, it is such a binary event. and people are worried if they leave it will create a chaos. but there is also a dramatic change in the yen. but it is more of the what if the uk leaves and what kind of disruptions that creates. but i'm more worried about what it creates for the eurozone as opposed to the uk because you encourage other countries to possibly want to leave. and you threaten the whole existence of the eu if the uk decides to leave. >> we have had a former german

defense minister who said, look, even if they vote to stay, it's bad news for the euro because if they stay, the idea will be that anybody can renegotiate some of the terms of staying, too. >> yes, but i can look at it the other way to say brussels needs to change their ways. and there's pushback against the establishment just as there is here and the establishment has to change their ways into the upbringing here, essentially. >> what do you think about the federal reserve bank meeting, none of them are expected to do much, but what will be the market's reaction to what they are hearing? >> in the market, it's beginning to accept the fact that all the central bankers have nothing really left to do considering everything they have already done. and in a sense they are -- their hands are tied and they can't respond to some of the things. let's just say the uk decides to leave, what is the bank of england going to do?

cut rates to to help the monetary easing? i think investors are sitting back hoping that things get better without doinging in doin more. i think it will just be an uprising. the sabres that have been killed by this policy, i any, will be -- it's a tax, it's a tax on wealth. so to tax capital and grow the economic incline for inflation is totally backwards. >> we are not going to go below zero on inflation and not get below one. if inflation is minus 2% and you're getting minus 1%, you'

you're -- or in real cases up 1% and you're making money. >> to me it's anti-free market, anti-capitalist and anti-economics. >> but minus 2%, why would a minus 1% be that way? >> it is how you measure inflation. should i use my core to measure the interest rate. >> but there is a core number in there. industry rates theoretically are -- >> john, why are oil prices down this morning? >> well, i think the battering in the asian markets you have seen overnight is central to undermining the recent rally we have had. i talked quite a bit about this,

but data keeps coming out worse and worse. just last week japan was down 25% year on year. month after month now. as well as the internal measures out of china overnight again are troubling. and there is also a situation with a lot of folks wanting to fill up their strategic reserve. they have been really smart about buying cheap oil to stick in the ground for troubled days ahead. and they are way ahead of us on that. and they have pretty much topped it off. so you'll see those numbers come down. once we lose the pill ler -- pillar again, he's looking for oil closer to $70 by the end of

the year. you are someone telling us we are probably not back to those levels and topping things off here. what the you think -- continental resources are firing up the wells that they had moth balled. >> that's right. i saw -- for the last couple of weeks, this is also from southwest, that shell is bringing rigs off the sideline. >> it was 11. yeah. >> the wonderful thing about all this, they are eternal optimists to make them partly so great. there's a blue sky mentality when i worked at the banks directly with help, trying to get them to hedge their exposure. it was a hard sell because when it was 80 it was going to 100. when it was 100 it was going to 200. >> is 50 enough or is it going

to be 50 to 70 to bring the rates back? >> they are hoping it will probably go to 60 to cash in on 60 for crude oil. the u.s. dollar is bound to strengthen here as the fed finally makes a ruling. >> so your call is $50 is the high end? >> i think the rally may have peaked already. >> thank you both for coming in today. coming up, when we return, the political reaction to the orlando massacre. president obama expressing outage. candidates trump and clinton talk about it as well. and a brexit warning from yani varq oufakis, greece's

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welcome back to "squawk box." returning now to the or land la massacre. 21 victims so far have been identified. the fbi interviewed omar mateen in 2013 and 2014 for possible terror connections but was not found to be a threat. candidate donald trump is expected to address terrorism in his speech today. john hardwood is joining us with political reaction to the terror in orlando. john, good morning to you. >> reporter: good morning, andrew. while investigators continue to amass evidence in this case, it falls to political leader to express the nation's grief and resolve. that's what president obama did yesterday when he went into the white house briefing room and denounced this as an act of terror and of hate. >> in the face of hate and violence, we will love one another. we will not give into fear or turn against each other.

instead, we'll stand united as americans to protect our people and depend our nation and to take action against those who threaten us. >> reporter: of course, this event touches on all of the political issues that infuse this matter. you've got terrorism, you've got gay rights, you've also got gun control. donald trump yesterday used the massacre in orlando as justification for his temporary ban on muslims. he said he was connerrect about that and will speak in new hampshire for a tougher posture on national security. and hillary clinton will be speaking to the issue in cleveland. her campaign yesterday said that donald trump was congratulating himself on this event. she is, of course, going to make a broader argument, not just about isis but the lgbt rights as well as gun control. so this debate is going to get much more intense in the days to come. >> john, we want to thank you.

we'll get into a intense debate right now with ben white joining us, the chief economic correspondent and cnbc contributor. just walk us through how you think this plays politically today, what donald trump says, does what he -- does hi argument fire up the base or the other base? i hate to make this as political as it's going to become. and how does hillary clinton respond and how does that play out? >> well, it's obviously going to become extraordinarily political. i think donald trump has a point to press forward here a case that the obama administration and hillary clinton is not doing what is necessary, which is to name this as extremest muslim islamic terrorism. but what he did yesterday as hardwood pointed out is to take personal credit for calling out islamic terrorism. this is something we didn't know about previously and that doesn't play well. the last 12% of the american public view him as commander in

chief. he's got to -- he's got an opportunity here. >> most of these have been home grown as far as here in our country. does the argument about muslims still hold? >> i think it does hold because these are people inspired in some way. this is a guy who claimed allegiance to isis at the last moment. this is someone disturbed with a lot of issues, and right about performing this attack he said he was with isis. so it is not clear if he was an extremist or husbandly. but i think it holds weight because several of the attacks by these folks were inspired by islam. if you are the democratic candidate and refuse to call what it is, how do you fight it? people are frustrated by that and see it as weakness and refusal to accept the problem. and donald trump, i think, the

rightly pointing that out. but the problem is he is looking to make it about him and not the country. that is problematic politically. >> how do you paint these? look at the two newspapers, paint this. one is -- one is going to be an nra discussion on gun control, which you are going to hear from hillary clinton today. the question is how much does she focus on this versus this? then you have trump up focusing on this without this. >> right. you have the two corners that the political spectrum goes into immediately shown on the covers. that's what happens in the aftermath of the attacks. you want to be someone to rise above this and present a comprehensive strategy to do well politically. you know, hillary clinton, i don't know exactly what she is going to say and will continue to talk about gun control. but the issue as joe was pointed off air is that criminals get access so their guns way way or

another. >> the nail bombs, they were homegrown in belgium. it is homegrown. kind of like a timothy mcveigh. homegrown. >> well, the united states says there's no question about it. >> i am familiar with that. >> so the question is, if you're donald trump and your policy is we are going to ban all muslim friends entering the country, that doesn't agree the question of what do you do with radicalized people in the united states already if you are a united states citizen. the question is to go beyond what he's already said and that is not to be -- >> nor the president or hillary clinton has uttered those words. it is unbelievable. >> it is unbelievable and frustrated. >> why haven't they? >> there are a couple reasons. one, they think it unnecessarily angers moderate muslims in the united states who think this is a perversion of islam and is not islam and makes them angry.

and the allies in the region helping us fight isis don't like to hear us talk about radical islamic terrorism. they think it is hate and other things but not islam. but it's a sensitive topic. forget the senseivities at a time like this and say, in ideology that is motivating people to slaughter americans. so at some point you just have to give up the nonsense and say this is what we're fighting. this is the internal threat. here's what i'm going to do to try to stop it in addition to fighting isis abroad, we are going to take a look at these people. if somebody like this is flagged multiple times by the fbi as your previous guest said, we'll keep eyes on him if he's buying guns. fact it has not been done at this point is ridiculous. >> there was a bombmaker that had been trained. i don't know whether there were any guys born here that have an affinity for isis. i don't know whether from the

internet they have that capability, but you get one guy here, i don't know how he gets here, but he slips through the cracks somehow. he's an expert at that and the next one is -- does trump have it to show you why he'll be the next great commander in chief? >> it will strike a chord that we need to be tightening up here. >> absolutely. he does have an opportunity here to increase the standing as the potential commander and chief. and he's low on that right now, but this is an opportunity to do betterment. coming up, the former greece finance minister was at the center of the financial crisis. how he's warning about brexit and the consequences that can follow. he joins us from athens right after this break.

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get better internet installed on your schedule. comcast business. built for business. welcome back. dow futures are down by about 45 points. s&p is off by 7. the nasdaq down by 16. just one day ahead of the first day of the federal reserve's meeting tomorrow. the brexit vote is ten days

away in support for the uk to leave the european union is on the upswing. the former greek finance minister yani varqoufakis is here. he is joining us now from athens. thank you for joining us, yani varqoufakis. bad for greece or bad for the eu? >> bad for everyone. look, this debate, unfortunately, has taken place on a basis that produces a lot more hate that light. there good arguments for staying and good arguments for leaving. but better evidence for staying. no one can say i'm a loyalist of the european union, but my great concern is two-fold.

firstly, that britain cannot leave the european union because they are utterly intertwined for the single market. and the second concern i have is that the brexit, even though it will not restore sovereignty to the house of commons in london, because britain cannot really -- it will speed up the integration and it will create an inflationary shock in continent of europe. a shock that will consume britain as we and destabilize the united states and china. that is my main concern. >> yeah. obviously, no one knows the counter factual. and people always argue about the counter factual. there's a lot of reasons that maybe the continent is growing as quickly as it could. obviously, greece's problems are highlighted and, you know, there's a lot of different -- a

lot of different causes for the ma lays you're facing. some people think to put the multi-speed economies together without a single fiscal authority. i mean, how do you know that ripping off the band-aid now, if it is a flawed experiment in the first place, maybe the sooner the better to let it die? >> well, there's no doubt that we made a huge error in yeurope by putting the cart before the horse. there's no doubt about that. the question is, what do we do now? we are in a situation where we created this monster of the eurozone economy, which is not just growing fast enough, which is in a state of very serious integration. forget greece. greece is the canadian mind that died on the rest of the architectural problems. think of germany now. germany has the highest savings

ratio in its history since 1945 and the lowest level investment. at a time when you have negative interest rates, you don't need to state how serious the problem is. my greatest fear is if we say, okay, this is an error. let's just allow this to disintegrate. that's going to create a huge cosm north and south of the alps with a dramatic europe northeast, spanning from germany to the baltics and finland, becoming highly inflationary as the new currency should do with the rest of europe having a terrible combination of inflation and unemployment. i have a question for you, how good is this for britain, even if it is an exit uniformly? what effect is this going to have on the united states and china? it is going to be pretty dramatic. so we need to fix it in the same way the united states in the 19th century, every time what

was affecting the confederacy, the financial crisis, you managed to create institutions to bring it together. this is what we should do in europe. i believe this is the best possible part for all of us. >> mr. varoufakis, i'm surprised to hear your plea to keep the eu as one. you yourself mentioned you're not a fan of brussels. and a year ago you were advocating when they were still working through the talks with greece, you were saying that you had to have a backup plan, a plan b for breeze to sta-- gree to start issuing its own currency. to say if things didn't go your way you were going to leave. >> that is not completely accurate. what i did have is a backup plan b. >> yes, of course it was. >> but it was a plan to get out

of the eurozone. it was a plan to close down the banking system. the federal finance minister may try to throw us out of the eurozone. the secretary has a duty to the constitution to have contingency plans of integration without wanting integration to close down the banking system, which happened. >> brexit came after the brexit talks and you were very vocal about saying we are not going along with anything the eu says. and if they are going to force our hand on this, we have to go our own way. >> that's not what i said. >> that is how i remember it. >> no, what i said was what you would have said, well, yes, but you were misinformed. you didn't talk to me, that is why.

>> you understand that the greek exit is what sparked the britis >> you may have been standing up for your constituencies but they are standing up for their constituent sis on different issues. i agree.

>> some of my best friends are not in favor of brexit. this morning i tweeted an article proposing brexit. i believe we should have a sensible, reasonable, national debat debate. >> we got to -- >> brexit has been since the 1990s. the feud within the party that lead to the -- >> we preeshts your time. thanks. how's the new project going?

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terror in orlando. the deadliest mass shooting ever on u.s. soil. kills at least 50 people. we're learning more about the massacre, the killer, and his motive. former new york police commissioner weighs in straight

ahead. defending the united states from threats at home and abroad. what we need to know about isis' potential role in the orlando shooting. richard engel just minutes away. central bank taking center stage. a growing possibility of a grexit weighing on investors. the second hour of "squawk box" begins right now. >> announcer: lye from the beating heart of business in new york city. this is "squawk box." >> welcome back to "squawk box." as we grapple with the tragedy in orlando over the weekend, let's take a quick look at the futures before we do get to the news. the dow looking like it opened down about 46 points off. and the s&p off about seven points. oil, at the moment, wti crude

trading at $48.45. we'll talk about the ten year in a moment. >> we want to begin with the horrible shooting over the bend in orlando. the largest mass shooting in united states history. right now here is what we know. authorities will be holding a press conference later this hour. we'll bring you the conference as it happens. this morning two more victims have been identified bringing the total of identified victims to 23. and isis radio said that the shooter is one of the soldiers in the caliphate in america. still unclear whether they're in direct contact with isis or isis inspired. cities are in mourning. leaders of the lgbt community speaking out against hate and discrimination. more vigils expected today. for more on the investigation and what to expect today, we go live to orlando, florida.

hello, eamon. >> reporter: officials continued the grim task at the pulse nightclub continuing to remove the bodies of those killed in the assault. they have now identified a number of those. the names and ages of the people a grim toll continues to mount throughout the day as relatives are being informed their loved ones were killed. here is what we know about the shooter. we're expecting a press conference from officials we think about 7:30 this morning. we might get a little bit more news in a half hour. as of right now, what we know about the shooter he was 29 years old. born in new york. he moved to florida where he worked as a security guard for a firm. his ex-wife was speaking to media. she said he was abusive and unstable. at one point his life goal was to become a police officer of all things. his father has been talking to the media saying the family was shocked by the attack in the events yesterday. here is what the father had to

say yesterday. >> he was born in the united states. he went to school in the united states. he went to college in the united states. so i live in my house. he was living in his house. when he was coming to see us, i didn't see anything, i mean, emotional behavior. >> reporter: now in terms of the investigation here are details that officials have been able to provide. the shooter used an ar type rifle. he was on the radar screen of the fbi for years going back to 2013 when he first came to the attention of the fbi. a coworker's complaint he talked about killing people an several occasions. isis claimed responsibility for this attack. just a short time ago and as i said we're awaiting this press conference from officials. we think it will happen, joe, about 7:30 this morning.

we may get new details on the unfolding tragedy here in orlando, florida. >> thank you very much. eam eamon javers. joins us now is former new york city police officer commission and brian levin. a director the center for the study of hate and extremism. commissioner, i would like to start with you. where do you think it leaves us in terms of addressing our safety here in the united states? >> well, i think the one thing or a couple of things that's going to come out of this, i think, jim comey made it clear to congress he needs more staff. i honestly believe that. i think with the amount of work the fbi is doing, with the people they are looking at, you know they have 14,000 sworn

agents, 20,000 administrative staff. a lot is analytical. i think he needs more staff. i think that's something congress has to consider. we've done an incredible job on intelligence sharing and, you know, identifying these guys in advance like this guy they've looked at numerous occasions. the bernardino people they were looking at. the problem is there's no consistent follow up. i think we have to take that intelligence sharing to another level. i think when the fbi agents go out to visit these people, i think the local police department, the local detectives have to go with them to be there to know the problems that may be existing in their own communities. you know, we have seven or 800,000 police officers in the country that could be looking at people like this and monitoring them or checking on them, i think lastly, the whole gun issue. you apply for a credit card, a

credit card with a $500 maximum thing on it. you know, a push of a button you know a credit report, you know everything about the person. you can give them the credit card or you can't. this guy was visited by the fbi on three occasions. he went out and bought two weapons. i think both on the same day will there's no flagging mechanism that hits the bureau or local law enforcement that says, look, this guy is on our radar. he's buying two guns. go check him out. what are the guns for? what is he buying them both on the same day for? what does he intend to do? >> that was the point of retired atf official we spoke with earlier today. where are the gaps? i guess it's hard for those not in law enforcement to understand the problem. it makes complete common sense >>well, look, i think it's something that, you know, these issues are going to continue to occur. they're going to continue to

happen. this threat is not going away. i've talked about it on your show numerous occasions. i personally think it's only going to get worse. we've got to identify the people that are already here. and the people that are home grown, born in the united states. we have people coming into this country that are going to be threats to this country. i think this is something that is going to continue for decades to come and we have to start learning how to get it right. >> professor, let's talk about how this is already very quickly -- a terrorist tack and hate crime here. you're somebody that looks into extremism and hate crimes. how do you dig through the layers here? >> well, definition of hate crime is criminal act where the target is selected because of the actual or preperceived group status. here it was the lgbtqi community. our hearts and condolences go out. terrorism is an act of violation

or intimidation to influence a population or subgroup for a political or social objective. so here we have something that is both. it's one of the worst acts of terrorism in recent american history, but also, if you look at the number of hate crime homicides tabulated by the fbi, from 1999 to 2014, about 141 -- we had 50 killed just yesterday. i think one of the things we have to look at is the terror watch list. people who can't get on an airplane can still buy assault weapons. that's insane. we don't know whether he was on a terror watch list, i think that's a place to start looking at visas. one of the things i warned congress about late year is we faced multiple severe risk factors and the jihadists terrorists who have sophisticated access to the internet and what we're seeing

is both with the dark web and social networking isis has among the most sophisticated, if not the most sophisticated terror operated net we've seen. they're being squeezed respect to the internet and the land they hold. like a cornered animal, they will act out. the problem is, we have ticking time bombs of people who are inspired but not necessarily organize straited and directed by the nefarious terrorist group. >> brian, you happened to be at the asite of the last attack hee on american soil, and just have to wonder being so close to that environment seeing this play out, where you think this goes. >> look, i've been saying this and i'll say it again. we're going to get hit again. so we have to do is get some common sense approaches. we have to tighten various regulations. look, we can debate guns. even in the heller case in which justice scalia wrote the majority opinion.

fundamental rights, even if you consider the second amendment to be a fundamental right like the first amendment and others it can be regulated. there are reasonable regulations including waiting periods, issues with regard to magazine size. we stro sit down and talk about that. we have to talk about access by mentally unstable people, violent people, and others and groups like isis are trying to target. what they say is go use firearms, they're easy to get in places like the united states and hit soft targets in the communities that you live. that's what we might have seen. we have to look at the fact that they're unstable and violent people on the list of individuals that isis would like to recruit. and our threat is a bit different than europe where they can go in and out geographically much easier to the theater in iraq and syria. here it's more people inspired rather than directed. but we have to consider the down

line the we might see orchestrated attacks as well. and if you see something, say something. we're not people who have to just sit by and take this. a citizenry that is vigilant can do quite a bit. >> brian mentioned the dark web and how difficult it is increasingly getting for law enforcement to actually watch and monitor these discussions. we had lots of conversations about apple a couple of months ago in terms of that privacy debate. but there are apps like telegram, which are encrypted from the beginning to the end. how hard is it making for law enforcement? how do you think about that particular issue now? >> it's extremely difficult for the law enforcement authorities to monitor these communications. and these apps are growing, the technology is getting more sophisticated. you know, this reminds me back in the days of the drug cartels.

for everything law enforcement did to intercept their communications or go after them covertly, you know, every step we made they took two steps forward. so this is something that is going to continue. they continue to get more sophisticated. you know, they're bringing in people that know the internet and know the web, you know, far better than some of our own people in law enforcement. and it's something we have to deal with. >> and they're working on their own platforms, too. they're making use of things but working on their own applications both al qaeda have that kind of technical sophistication. so very sophisticated web use. let me echo his words that the sophistication with regard to technology and the internet is increasing monthly. >> right. >> where do you -- give this

idea they're building their own platforms when it comes to the debates we've been having where whether apple should allow end-to-end encryption or telegrams should exist. it sounds like the debate is almost over in that regard because you're saying they're building their own systems. >> i think you're right to a certain extent. what we're seeing is the technology is often both ahead of law enforcement as well as the legal conclusions that courts are coming to. so increasingly what we're going to see are types of encryption that we will not be able to unravel because they're going to be developed by these terrorist groups themselves. it's already an increasingly difficult landscape for law enforcement. more so than even two or three years ago. what we're seeing is these kinds of attacks are increasing not decreasing. we have to step up our game. >> bernie?

>> yeah. one thing i don't think people are focussed on or focussing on now because of the shooting is the cyber threat by isis and al qaeda and the radical islamic groups. that's coming. these guys are constantly looking how to get into, you know, different financial institutions, shut down the internet and things like that. that's going to be a major problem. because as they get more sophisticated, those are threats that we're going have to deal with. >> thank you so much. >> gentlemen, thank you both for your time. >> thank you. a crucial central bank decision will be the focus for investors this week. the fed holding a two-day meeting and a new poll how brits feel about brexit. a new week of trading is ahead. meantime, take a look at the futures at this hour. back in a moment.

thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. how is this going to affect the markets? we'll take a quick look. we have jim from chicago institutional services. market is already dealing with a lot of different issues, jim. negative interest rates and a slowing jobs market and appar t apparently in the u.s. the inability of the fed to get out of this box it's been in for a long time.

now we have, you know, i think about, you know, you look at advances made in humanity and it keeps getting shorter. it seems like the time in between terrorist attacks is getting shorter. i don't know what it says. >> it's amazing to me that we do have such a short memory now as far as markets goes. the markets now are not really concentrating on terror attacks. they're concentrating on the brexit. until mid last week we thought it was not a likely scenario and now it seems likely. asian markets are pommeled. ours are not. if central banks get worried which they are worried over the last five or six years. the normal response to throw money to the system. at some point it has to end somewhere. we saw the move in the yen overnight. the yen rallied quite a bit. they don't want that. they don't want a strong yen. they meet that with more accommodation. of course, you're supposed to buy gold and probably supposed

to buy u.s. stocks. not now. there's going to be volatility. but it could be one of the things left on the good list after this is said and done. >> you know, up another $10. okay. so the reason the interest rates are negative because inflation is negative in certain places. not here but in certain places. that doesn't seem like a time to buy gold. it makes no sense. >> i don't agree with your thesis, really. i think one of the reasons rates are negative because central banks keep buying are every debt. >> they're buying it up because they have no economic growth and inflation. >> yeah. i know but every day that the yield on our treasuries goes lower, that makes gold's yield more attractive. everyday the yield on our treasures goes lower it makes our confidence in central banks and the ability to rescue us from the malaise we're in goes down.

that's why gold goes higher. i think gold is a good trade. >> great. get my paperwork -- at this point, jim, i mean, the united states and the yield the real yield you can make here even at 162 versus our inflation rate is a lot better than even the yield you're getting anywhere else or is it lower or i think there's still a reason why foreigners would be buying our paper here. right. because they got -- >> no doubt about it. yeah. we're here conditioned to think the 1.6 is awfully low sum. the rest of the world thinks it's a fat rate. every time there's any sort of, you know, dislocations however big they are, we still see people jumping in and buying long-term rates. they'll probably continue to do that. now we think about the fed and how it seems quaint they were talking to us about tightening

now we saw 38 on the nfp and the brexit heating up. they're not going to tighten in june. they're probably not going to tighten in july. it creates more money in the world over and it ends up in stocks and gold. >> okay. we'll talk more about the brexit. 68% stay with the betting markets, but i saw 19% leave on some polls. i don't know. >> yeah. the point it's getting more likely. i'm not sure i believe in the way polling is even done since they can't call people anymore on their cell phone. i don't respect the polls as much as i used to. we used to think it was a remote possibility. now we think it's a real possibility. >> all right. thanks. still got that jacket. >> the traders jacket, right? >> yeah. of course. it's supposed to be ugly. you're supposed to be able to see me on the floor. >> it looks like a prom tux from

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welcome back. symantec agreeing to buy in blue coat. blue coat ceo will take the top job after that deal closes. walmart canada will stop accepting visa. saying the visa purchases remain unacceptably high. verizon, at&t set to go to the third and final round bidding for are yahoo!'s internet assesses. hoping to finish up by next month. when we come back, isis in america. the risks and what we know about the orlando shooter. that's all coming up after the break. officials in orlando preparing a press conference and we'll bring it to you as they begin speaking. right now you can see take a look at the u.s. equity features. they're weaker this morning.

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we are just getting additional details of what has been happening in orlando. this is the mayor of orlando buddy dyer. >> we begin thinking of the

families and identifying the victims, which is critically important. i cannot imagine being one of the parents or knowing your loved one may be among the deceased and having to wait to find out. the fbi did an unbelievable job of clearing the scene. by 11:00 all of the victims had been removed and turned over to the medical examiner and to the fdle. they, also, stood tall and did their job. now 48 of the 49 victims have been identified. 24 of the next of kin have been notified with more to come. the number to call for families is 407-246-4357. as the next of kin are being notified, we're putting the names of the victims on the c y

cityoforlando/victims. i want to compliment the medical examiner and the fdle for the work they did all night long in making the identifications and then notifying the next of kin and we will continue that process today. again, we will not be defined by the act of a cowardly hater. we will be defined by how we respond, how we treat each other, and this community has already stepped up to do that. thank you. governor. >> thank you, mayor. just a few minutes ago, i asked to declare a state of emergency for the state of florida. i did that yesterday and orlando, and orange county, and the mayor did it yesterday for the city. when you think about this, you think about thank god it wasn't our family. you go through that list of family members we have and a lot of individuals from puerto rico. we have a wonderful puerto rico

community. having an individual that works at harry potter. i was there last week. these are people that we interact with every day of our lives. our law enforcement has done a wonderful job. they're allowing the police department, sheriff's department, fdle, the fbi did a wonderful job in getting the bodies removed from pulse and fdle and the medical examiner did a great job of identifying the woids. this is a wonderful community we live in. we're the best melting pot in the world. we have 20 million people that live here. over 100 million people that come visit here. it's a wonderful place to both live and visit. we're going to continue to work hard to take care of these families and make sure we try to get this community back and work as quickly as we can. right now it's time to grieve for each family member that lost a loved one or has somebody in

the hospital injured. now i turn it over to the orlando chief. >> good morning. i want to provide more information about our initial response and subsequent rescue of many, many people. so, again, we had an extra off duty officer working for pulse nightclub in full police uniform at about 2:00 he responded to shots fired. he did engage in a gun battle with the suspect somewhere near one of the entrances. shortly after that additional officers responded. those additional officers made entry while the suspect was shooting, engaged in another gun battle with the suspect. forced him to stop shooting and retreat to the bathroom where we believe he had several hostages. at that time, we were able to

save and rescue dozens and dozens of people who were injured and not injured and get them out of the club. things kind of stabilized base on statements made by the suspect about explosives, about possible bomb vests, we kind of secured everything, called s.w.a.t. and did set up for the explosive breach where we need there were 15 people in the opposing bathroom to where the suspect was with his hostages. based on statements made by the suspect, based on information we received from the suspect and from the hostages and people inside we believe further loss of life was imminent. i made the decision to commence the rescue operation, and do the explosive breach. the explosive breach did not penetrate the wall completely. we used our armored vehicle bearcat armored vehicle to punch

a whole in the wall. there's a hole in the wall about three feet off the ground and able to rescue dozens and dozens of people that came out of that hole. the suspect came out of that hole himself armed with handgun and engaged in a gun battle with officers where he was ultimately killed. so at that time -- at this time, i want to say the pd officers from the initial responding officers to the s.w.a.t. officers acted heroically and courageous and saved many, many lives during this operation. and our officer was struck in the kevlar helmet right above his forehead. the kevlar helmet did save his life. i spoke to him at length last night. he's doing great. so at this time, i'll turn it

over to special agent. >> okay. we're going to move away from the news conference right now. we actually are pleased to have our nbc chief foreign correspondent richard engel joins us now. and, richard, it's unfortunately some of us can actually watch the progression of our lives based on i remember that was after belgium or that was after bernardino. it just -- we know there was the horrific attack in tel-aviv last week that, you know, if it's not right in the united states, it doesn't seem to be -- it seems like these are happening more frequently or just my perception? >> reporter: no, i think they are happening more frequently. you're seeing a dissim nation worldwide of these small scale gun attacks. i spoke with a senior u.s. official yesterday, and he was saying the main problem is extremism. no doubt. but also that in the united

states it's very easy to get an assault rifle. he said this is not a left wing person. this is a very serious military official counter terrorism official who said to me, point-blank, the assault rifles have to go. it's an issue. it's a strategic weakness for the united states. if you look at every country, it has a unique terrorist threat. i would say in europe, strategic vulnerability would be its proximity to the battle zones of isis. and the large communities in european cities that feel alienated and become breeding grounds. that's europe's strategic threat. it made even worse by the migrant crisis. the u.s. strategic threat, according to the official, is the availability of guns. we're protected by distance, by the oceans from the middle east, and haven't had nearly the same number of extremists going over to join isis. you can get a close to military-grade weapon fairly

easily. >> and -- in paris as well. much different in the e.u. and difficult in france to get assault riffles. so, obviously, you don't want to make it -- let me ask you this, richard. we're talking isis-inspired now versus actually trained on the ground. and i'm wondering whether that will continue to be a clear delineation as they get more and more effective at social media. and, i mean, there's one thing that takes glamourize isis if you're disenfranchised and another if you have contact through the internet with an entire network where you may not have visited the middle east to get trained, but you may be fully part of the network at that point. and, you know, they're calling this guy an isis soldier. -- or a soldier of the caliphate. i don't know if we can take it

at today's value. they're getting pretty good at recreauiting people through the internet. they're bona fide isis soldiers. >> reporter: well, the u.s. government there had been a line that was emerging that if you have self-radicalized, lone wolf style attackers they're dangerous. they can kill many people, but then if you have attacker that have gone over to the middle east and have been training and fighting alongside isis,hardene experience in killing and become that much more lethal. some officials in europe and the united states were taking some comfort in that saying at least we can try and limit the access of our citizens to getting that battle field training, but if you get people who are have a degree of skill and have access to weapons, it up to the individual. this person worked for a

security guard company so seemed to be fairly proficient at using the weapon. when you listen to that description we heard of the raid that was launched to stop this attack, it sounded like a military operation. an explosive breach to punch a whole in the wall. so then a vehicle being brought in to open a gap in the wall. people streaming out. the gunman popping out at one stage. a running gun battle, reinforcements coming in. even if he didn't go to syria to get training, this sounds like someone who was quite proficient with the firearms he had. >> the case had been made we have isis comprised in its home in a lot of ways and they may be worried about oncoming military sort of initiatives. they're spreading out and doing what they can do in outlying

areas. are they, in fact, feeling less confident about securing their own so they have to ramp up their activities outside of that? >> i think they are but i'm not sure if that was responsible for the timing of this particular attack. i'm not sure how centrally coordinated it was. on the battle field, isis is facing a lot of pressure. it's facing pressure from the assad government, which is closing in with help from iran and russia, in particular, and facing pressure from u.s. of-backed kurdish fighters. so there's a dynamic battle field. isis has been facing losses. it has been seeing some of it fighters and european officials have been complaining that they are raising -- sounding the ala alarm. hay are seeing isis defectors

fleeing the battle field and heading home. that's a concern over time. but whether it was a strategic attack ordered by isis to take pressure away from the home front battle field i frankly don't know if we know at this stage. >> there have been reports there was a list released in the last couple of days 8,000 people on it to be targeted, if you will, in the united states, including 600 in florida along with a message about targeting people in the lgbt community. do you believe that's accurate, and do you believe that cohort is being specifically targeted? >> reporter: i don't know if that list was related to this specific attack. but one thing i can say is that people are trying to parse the difference between was it a hate attack against the gay community or was it a terrorist attack? when you're dealing with isis, there isn't a difference.

isis targets muslims who don't agree with it. isis target s gays. it's thrown them off buildings for being gay in isis-controlled territory. it targets christians, it targets jews, it's a hateful, intolerant group. it find gays to be particularly loathsome to its own ideology. it was not surprising at all it chose this target. but had it chosen a synagogue, it would have been equally unsurprised unsurprised. >> thank you. i appreciate your time this morning. coming up only 10 days to go until u.k. voters to head to the polls to decide whether britain will remain in the e.u. we'll get you up to speed on what you need to know about a possible brexit and market reaction. check out the european markets at this hour. there are red arrows. in germany the dax is down by

1.2%. particular story in france. ♪ the first stock index was created over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks.

a fears of brexit vote momentum growing.

cnbc joins us with more on where things are headed. >> good morning. the markets are finally waking up to the prospect of a possible british exit from the e.u. thus far focussed on the british pound. if we look at sterling year to date we're above the lows of late february shortly after david cameron set the date for the referendum. why? we have to look at the betting market that show while confidence has fallen, it is still the most likely outcome. the implied probability of an exit based on the latest is 39%. why the discrepancy suggesting stay in that's because of the expected swing on the day of people not wanting to vote for something unknown. so the key thing to watch in the next ten days until the vote does the economy dominate the

debate? or does immigration dominate? on that note i asked the leading polish guru if events in orlando would make a difference. >> i think something probably bigger has to happen. when you get these horrible events never going to be quite sure how people react. >> u.k. assets certainly responding accordingly in recent days. european assets perhaps have some weakening to do. >> so the idea that even though some of the polls are showing exit is a stronger camp now. the idea that fear will factor in a fear of the unknown what happens if we decide to leave? >> right. where the money is at the moment in betting markets and sterling suggest confidence that the vote will be to remain despite some polls suggesting exit. the polls i like to go back to have exit in the lead 46 to 44

which is significant. the pound at the moment still above the lows of february. it's waking up to things in the recent days. the focus is on the euro itself. year to date the euro is still up 4% against the dollar. 6% against the pound. and that suggest the a lot of complacency on that. the last couple of days it's starting to move. >> you're taulk about a much closer vote. half the country will be unhappy with how it gu goes down. could be a similar situation in november in the united states. >> absolutely but in terms of the outcome itself if it's a close outcome even a close outcome with the remain vote will leave some uncertainty and pressure on david cameron unless he gets a resounding victory. there's a lot of factors to look at. the pound's response far more

outweighs. we look at europe how often do we talk about the german dax moving on days when there is bad news out of china. 10% of german sales of the dax go to china. 9% go to the u.k. in that sense we're not seeing that response. maybe in the last day or two. when you look at the pound's response year to date versus european assets there's a potential -- >> a lot of volatility. >> yeah. i think so. >> so if -- cameron could be gone? >> he maintains even if leaf, is he won't resign. i think there will be huge pressure. >> just barely wins. >> i think there's going to be a lot of pressure. his party is largely divided at the moment. i think there are a lot of questions how do you risk significant aspect of the future of britain.

i think it was close he's face issues but as we'll know in the lead up to election, the rhetoric is strong as soon as it happened. perhaps we move on it. but certainly if there's a vote to leave despite him maintaining. >> it's scary to think. your guest said that the u.s. terror attack won't sway. if there was something, god for bid, even in europe or the u.k., then -- >> i think it would probably have an impact later on. as you said, god forbid. it's hard to predict. what i would say is immigration -- if you look at the last two or three weeks gained momentum. a large amount has been to the immigration debate and successfully the likes of boris johnson have managed to make it an issue without ostracizing people. in the past they have done. and managed to harass it. >> if britain leaves then --

right. >> i think this -- i think if you see a geographic call split that would potentially lead to a reason toward another referendum. we have to go through that. it's a long way to go but certainly it's an issue. you could see another one. >> i can't believe you're watching this as over here. >> i'm over here for the rest of the week and fly back for the weekend. >> you're still think soccer is more fun to watch than real sports over here. >> i do. >> and the crowd trouble another issue. >> yeah. >> the polls we had on this morning was mentioning that as a different factor. it's fun to watch. >> okay. >> pleasure. when we come back we'll have more on the investigation of the orlando shooting. you are looking right here at a live news conference that has been happening for the last 20 minutes or so.

we'll have an update at the top of the hour. "squawk box" will be back after a quick break.

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and thursday may cpi. and the may housing starts. that comes on friday. stocks to watch. there are some to watch. symantec agreeing to buy blue coat systems at $4.6 billion deal. it will give symantec access to cyber defense technologies. blue coat ceo will take the top job. and verizon and at&t are set to go to the third and final round of bidding for yahoo!'s assets. and they are hoping to finish the auction by the end of next month. more on the tragedy in orlando when we return. officials holding a news conference this morning. an june date on the investigation. those details after the break. at 8:30 a.m. florida governor rick scott will be joining us here on "squawk box." stay tuned. we'll be right back.

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terror in orlando. the latest on the investigation this morning into the worse mass shooting in u.s. history. florida governor rick scott will join us live this hour. keeping america safe. what must be done to make sure another massacre doesn't happen.

counter terrorism experts francis townsend and michael german are here with their ideas. >> and markets now. stocks around the world under pressure this morning. unservety the main focus as the final hour of "squawk box" begins right now. live in the most powerful city in the world. new york. this is "squawk box." welcome back to "squawk box" on cnbc. first in business worldwide. the futures here aren't reflecting what is happening in foreign markets. not great in europe. even they have concerns brexit, china, who knows what is happening there. is it growing as quickly as we think? for once it's not all just one big global market. everybody has different concerns. over 1% losses there in europe and across the board. the dollar has been

strengthening, again, maybe on brexit. the euro up 112. the pound down to 141. as we said, it's still not at the lows it saw in february. some of the polls say leif camp is winning but the betting market is about 65% stay. today's story the developing story into the massacre in florida. eamon joins us. >> reporter: law enforcement officials wrapped up a press briefing givining a briefing of what happened saturday evening into sunday morning. officials say there were two gun battles at the outset of the incident. the first occurred with the off duty police officer who was wearing police uniform on duty as normal course of security at the nightclub. the second was when a second waive of officers responded to the attack. they exchanged gunfire with the

suspect. he then retreated to a bathroom area effectively taking a number of hostages. officials say they were able to get a number of survivors out at that point. but over time as that hostage system situation continued to develop, officials decided they had to go in and rescue those people who were trapped alongside the killer. the orlando police chief made the decision to do that and then he described what happened immediately thereafter. here is what he said. >> we used our armored vehicle to punch a hole in the wall. we were able to rescue dozens and dozens of people that came out of the hole. the suspect came out of that hole himself armed with a handgun and long gun, engaged in a gun battle with officers where he was ultimately killed. >> reporter: now officials say they were able to negotiate at least have some contact with the

suspect while that hostage situation was unfolding, but he didn't ask them for a lot. they were the ones doing the asking trying to figure out how to resolve the situation. here is what we know about the shooter as of right now. 29 years old, born in new york. he moved to florida. he worked as a security guard for a company called g4s. coworkers there complained he talked about killing people. his ex-wife went on television yesterday. she said he was abusive and unstable and despite that, one of his ambitions in life was to become a police officer. now of the investigation, here is what we know. his father said the attack may have come from the hatred of homosexuals. the shooter used an ar-type rifle in this assault. we learned today from officials just briefing us just now there was a third weapon found in the shooter's car after the attack. that's what we know as of right now here in orlando, florida.

>> the device -- we haven't heard anything about that. any kind of suicide vest. nothing like that? >> reporter: well, what officials said was there was talk of a device or a bomb or something like that during their conversations with the suspect during that hostage situation when when he was in the bathroom. there was two bathroom areas adjoining each other. there were hostages in one. 15 in another. it's not clear with the shooter was at all points but he was in contact with law enforcement and he did, according to law enforcement just now make some conversation reference to having a bomb or device. it's not clear, though, whether he did. officials are trying to figure that out now. >> thank you. we are going to continue the situation now. francis townsend is here now. president of the counter streechl project as well as counter terrorism advisor to bush. and michael german is here. a former fbi counter terrorism officer. good morning to both of you. how much of this -- we're

talking about both of these covers this morning. how much of this is a policy and intelligence failure, if you will? and how much is a gun control issue, if you will? or is it both? >> there's a lot. right. there's a lot. all of it is wrapped up in this. i think, look, when 9/11 happened, we weren't talking about controlling box cutters. right. we are talking about gun control. because understandably the access to guns in this country and we see these mass shootings and assault rifle is so lethal and its capability to reap the harm we've seen in orlando. it's understandable we're going to talk about this now. on the other hand, we need to understand what investigators know and didn't know. how did they make the judgments they made? you know, director comey said he has terrorism investigations in all of the 50 states. he doesn't have the resources to cover all those full-time. so we've got to make some judgments. are we willing to give the fbi

more resources to get more coverage in these cases? and the other thing is, do they have the legal tools, the attorney general guidelines inhiblt their abilities to look at things like social media posts. >> the answer is yes, i would imagine. >> yes. for both. >> that's right. yes. we have to talk about both. >> i'm saying in terms behalf is had missing. the ability to look at social media. >> yes. >> what is missing in this? >> i think pack of the problem we opened it too wide. we're looking at too many people we don't have a reasonable basis to be looking at. that creates two problems. one, it diverts law enforcement resources, number two, it lures the agents to false alarms there's a reason it's against the law to pull the fire alarm. we know it dulls the response when there's not real fire. our counter terrorism system is

constantly ringing false alarms. so often it's hard to respond and acknowledge what is a real threat -- >> this guy would have fallen in the second camp of people we didn't think were important to follow up on. how do you narrow the apture but at the same time follow up on real threats. >> it's not an easy task, but you have to do it somehow. right. i think, first, we have to recognize there are a lot of bad people in the world. unfortunately no matter how good law enforcement is, they're not going to be able to stop every bad thing from happening. on the other hand you have to have reasonable triage. if you have triage on the front end we're going wait until we accumulate the evidence you're going to focus more sharply on the people doing things. >> you say we're looking at too many people. do we need -- you're an aclu guy. i can't imagine you're saying we

need to profile -- >> no. and that's a big part of the problem. a lot of the terrorism research that has been conducted tens of millions of dollars being funded into it is really of extremely poor quality. so we're producing these profiles that aren't based on objective evidence about the people who commit these crimes. instead based on the ideas that people radicalize. there's an internal process. you know, if this person -- >> why is that a species idea? >> here we talk about the radicalization if this person didn't have a particular ideological hook that we've put it on, we wouldn't be talking about what was his criminalization process. what the evidence shows when they study actual terrorists is they don't go through any kind of a process that is any way can be modelled. these are individual decisions usually brought about with -- much like -- >> it sounds like you're

throwing up your hands. >> absolutely not. >> what you can do, in some respects, the question to ask in this particular case. if you evaluated him three times and none of those times did you believe he was other thanes a spir rational. he was a blow hard. why didn't we pick up when he bought the weapons? that was a disruption opportunity missed. if there's a failure here, the failure is an understanding when he made that move and who understood that and why weren't the dots connected. >> systems failure meaning -- is it building software programs and data bases that are connected? is that what didn't happen in this instance? >> we don't know yet. the fact is, if you're relying on human beings to share information, it's too slow and it's prone to failure. it ought to be if the fbi interviewed you three times and you buy a weapon it trips something in the federal system

so they can look at you. >> the problem take it out of the gun control issue. you could put a pause how long it takes to buy a gun. if you go to home depot and buy a box of nails, it's not necessarily going to trigger the fbi. >> that's right. and this is, look, interrupting this cycle is quite difficult. there's no 100% solution. i think there are things we can do that we can improve the way we investigate. >> i think we have to keep in mind there are roughly 15,000 homicide in the united states each year. a third goes unsolved. half of the violent crime overall goes unsolved. if you put resources into solving those crimes. number one, we're probably going to trip over more people that would do harm than using these mass surveillance techniques. we're going to make all communities safer. >> how much money needs to go --

how much more money needs to go to the fbi? >> that's a question for the director. he's got 14,000 sworn agents, he's got 19 or 20,000 administrative support analysts. the number is going to be determined by the mix of analysts, investigators. >> right. >> i think we have to keep in mind that throwing money at a problem is not always the answer. one of the big problems we haven't done an evaluation of our counter terrorism methods to determine what is helpful and what is not. if we keep throwing money in programs that aren't successful and identifying threat it's not going to make anyone safer. >> thank you. coming up continuing coverage of the orlando massacre and the ongoing investigation. florida governor rick scott will join us at 8:30 eastern. up next the market story of the morning. questions about the global economy and brexit. the fed meeting jason will join us.

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welcome back to "squawk box." more trouble this morning. walgreens saying it's terminating its relationship with the blood testing company. the drugstore chain said it's immediately closing all 40 of

the testing sernltss in the stores. >> they were still open? >> yes. they couldn't believe walgreen was working with them. >> can you use the theranos tests on me, please? did they do a test? >> it had become more and more contentio contentious. unfortunately for theranos the walgreens connection was the start up to most of the revenue. >> what about -- >> i don't know. i think walgreens move is a much bigger problem because of what it means directly. >> we should get to hettet tobe. what is the final now? >> he's not available. you think that's who we're going to get? >> no. >> i think we're supposed to see him soon. he's great.

>> i wonder at this point -- dwron wi don't know who knows. >> by the way, they have a lot -- they can keep -- >> the issue is walgreens connection was i was surprised to see that partnership continue for so long after they invalidated over 10,000 blood tests. it's a question of making sure you're taking care of your customers. no matter if it works or not. >> what is the end of the jennifer lawrence movie? we're getting closer, perhaps. all right. still fascinated by the name. i didn't do it on purpose. >> jason trennort. chief investigative strategy at asi. >> i used to be.

>> how many employees do you have? >> we have 55 employees. >> wow. >> a huge success. we knew you -- >> we don't, you know, we don't buy green banana nas. we're trying to survive every day. it's a tough business out there. we don't take anything for granted. >> over the weekend it was fascinating. i had to read it slowly because i had to go slowly. how it applies to inflation. what people do when you're in a position and basically your money if you sit on it is worth more five years from now than it is worth now. there's no reason to spend it. it's a horrific, vicious cycle i think the globe is stuck in now. >> i couldn't agree more. i think it's a tyranny of the ph.d. i think if models would tell you negative rates. it somehow produces the idea that people will spend more money and take more risks. i was in japan in february.

the first article i read i saturday down people were buying saves safe saves. people are hording large te nomination bank notes. it's manifesting inflationary. if you're an economist and running a model. it makes sense that people should take more risk, but if you're an average that doesn't have a model. you're saying it scares you. i'm going to save more. i think that's the tension. there are a lot of unintended consequences to it, too. a lot of bright people who are somehow just missing it. >> i can understand it. you're using the negative rates to conjure up inflation. when it doesn't work and stays there, then these policy guys

can is say this is where we should be. negative makes sense. >> you're using the wrong tool. it's four wheels. there's fiscal, monetary, regulatory, and trade. the monetary policy was over inplait i infla inflated. if you're suing jpmorgan for bear sterns did. the average fico score -- >> it looks like a dragster. two big rear wheels and two tiny wheels. >> you're down to the axle on one of the four wheels and expecting one wheel to do everything. and what i think has to happen next year and i think what we're telling our clients to do is expect a synchronized fiscal stimulus. this is partly hope and partly from the idea they're running out of options. clearly negative interest rates and reliance on monetary policy. >> are you an establishment.

are you david cameron? do you think they stay, and do you think it's a good thing they stay? >> i -- i think if you're in the financial community, depends on where you are. in tfinancial community it's a good thing if you stay. >> maintaining the status quo. >> that's right. >> and also -- >> joe, it depends on where you are. this country, too, a lot of questions you're seeing politically. i think donald trump and brexit, in my opinion, are two sides of the same coin. they're reflections of the same sorts of concerns. >> if i suggest that we make it the united states of north and south america, and i'm going to bring in venezuela, argentina, peru, i'm bringing in everything and they goat use tet to use th and our interest rates. >> good. >> it never sounded good to the

average person in europe. it was completely driven by -- >> every elite -- do you think -- >> no. i'm saying i think is going to be a lot closer than people -- we did a survey of our clients. only 7% thought britain would exit. it scares me from an market perspective it's not priced in. it's closer to 50/50 than you think. >> that's going to be something. and the 23rd. >> it's because the fix is in. i think certainly the establishment, you know, the establishment wants it to stay. and they're going to move heaven and earth to get it to stay. >> okay. >> thank you, sir. >> thank you. coming up when we return we have continuing coverage of the orlando massacre and the ongoing investigation. florida governor rick scott will join us live to discuss it all.

we're back in a moment.

there was a somber mood throughout the tonys last night. james corden opened with a message for the fallen. >> on behalf for the whole

theater community and everyone in this room our hearts go out to those affected by this atrocity. you're not on your own now. your tragedy is our tragedy. theater is a place where every race, creed, sexuality, and gender is equal, is embraced, and is loved. hate will never win. >> as for the awards, it was a big anytime for "hamilton." takes home 11 tonyinies includi best musicals. hamilton earned a record 16 nominationlin-manuel gave a spe. florida governor rick scott will join us live. bringing us the latest on the orlando massacre.

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the today's developing story the investigation into the orlando massacre. pete williams of nbc news joins us now with the latest on the investigation. >> reporter: the police have given a new timeline of what happened at the shooting early sunday morning, about 2:00. they say most of the people who

were shot, and they have put the number of victims now at 49. 49 plus omar mateen for a total of 50. most were shot when he entered the nightclub. when police responded they forced him into a bathroom where he was on the phone with them repeatedly for several hours. it was in the bathroom he made the 9-1-1 call when he pledged support for isis. during repeated calls with police, they say he claimed to have explosives and put out some kind of time line. apparently saying when the explosives might go off. based on that information and what they were hearing from other victims who were texting and making phone calms who were elsewhere hiding in the club they decided to enter. they threw in stun grenades to distract him and used an armored vehicle to punch a whole in the wall. more people came out the hole and mateen came out and police got in a gun battle with him and

killed him. the fbi said agents interviewed him a total of three times and put him under surveillance for awhile but concluded he was somebody who liked to spout out. agents found nothing to indicate he was on a path to terrorism. his house was thoroughly searched. his apartment about 20 miles from orlando who was searched overnight. so far police say no indication he was directed or in touch with foreign terrorists. >> i want to ask pete a question. pete,5 any word on the guy's house, happen laptops and all that stuff. how long does it take? >> it will take a long time. several days to fully exploit. of course, one question we want to know here did he have any electronic devices that the fbi can't get into. you remember what happened after bernardino. we're waiting to hear whether he had any iphones they can't open.

we haven't heard what devices they found. obviously exploiting his electronic record will be an important part of the investigation. >> i mean, i hate to even ask whether isis -- can we actually take them at their word, but, i mean, are they -- would they typically hype that and say he's a soldier of the caliphate just to take credit without actually anyone having had any contact with them? can you be a symbolic soldier? >> i think that's the assumption here. typically when isis has claimed credit in the past for attacks which it was involved, they've given details or had videos or statements from people. there's none of that here. there was no statement from isis until well after the event and until after it was publicly reported he made this 9-1-1 call in which he claims support for isis. so i think at this point the thinking is that's such a post

hock thing it can't be taken seriously. >> thank you. we appreciate it. switching gears we have a market alert. this is unusual. mierk soft shares are halted news pending. we're going to monitor this and bring the news as it happens. we haven't seen this happen with microsoft in some time. it happened at 8:25: 12. what the news is, we don't know at the moment. the moment we get it, we'll, of course, bring it to you. and, of course, amid the other stories we're covering this morning, there's also a fed meeting this week. fed officials convene a two-day meeting starting tomorrow. our senior economics reporter steve liesman is here now. we have gone round and round around the meeting. a rate hike is off the table. >> that's right. the weak may jobs report saeale the deal. not expect a fed rate hike. before that the chance of a hike surged as high as 35% because

the data had been improving. the result of that weak jobs report along with concerns about the brexit vote coming after the meeting is to reduce the chance of rate hikes over all the next several. take a look from reuters. 18% chance in july. 35% in september, 36 in november, and it doesn't get over 50% until february 2017 at this point. that can change. it changes with markets and comments by the fed. >> there's plenty of time for that to come down to 18%. >> exactly. we're going to have full results beginning tomorrow with the exclusive cnbc fed survey. i want to share one early result. the biggest threat is the economic recovery. global economic is 28% down from 36. tax and regulatory policy stepping up from 22 to 28. rising rates 25%. protection trade policies is something new on the list.

13%. and there it is terror attacks in the u.s. seen as a 0% threat to the global economic recovery. we've had that on since december. we began asking that in bernardino and just very quickly it had been only as high as 3%. >> okay. we need to break in. we have the news on microsoft. microsoft acquiring linked in. microsoft acquired linked in for $196 per share. all cash transaction. 26.2 billion dollars. that's inclusive of linked in net's cash. linked in will retain the existing brand and culture. jeff weiner will remain ceo of the company. they are all fully in support of the transaction. >> linked in, by the way, market capital before the deal was

announced was $15.5 billion. it's a large deal. >> looks to me all cash transaction at $26.2 billion. it includes the cash they have on hand. >> microsoft has been around a long time. >> they have not. >> the one before this was the phone company they bought. that they got -- >> nokia. >> right. >> that was only -- >> that was substantially less. they bought skype over the years. that was a smaller deal. >> this is not the way they've done things before. i don't know you immediately say do you understand the synergies here? >> that's the question. what it does for them. does it put them more -- it clearly puts them more into the business community.

it gives a social network of sorts. they wanted to make their way more even more into the enterprise. it's a staple of what they're doing. they built out their apps on iphones and other devices recently in a more meaningful way. >> i've never said yes to someone that says let me -- i'm not on linked myself. it's like sorry. >> i'm on linked in. >> what does it do for you? >> we're in slightly different business. you probably need it less. you're not the type of person who is going to sending your résume around before you get a business deal or offer or something that comes up. it's pretty useful. in fact, a lot of people i've spoken with say one of the first place an employer will look is linked in. >> it's an employment facebook. >> yes. >> the question has been whether they can evolve it beyond that so it's effectively a true social networking platform. >> at $26 billion they better.

it doesn't seem like a service worth $26 million. >> they do -- by the way, this is a real company with real revenue. they have a lot of e members. it's not a made up business. >> i have spoken to employers who say it's the first place they look. if you're not on linked in, they won't necessarily pursue something with you. you need a stable process. >> can i join this? >> you can. while you're doing that, why don't we bring in john ford. he joins us with more. john, what do you think about of the deal? >> caller: well, this is one of the i would say most important cloud properties out there. and the reason for that -- >> linked in? >> caller: linked in is. microsoft with the azure cloud service is an important strategic move. everybody trying to take on amazon which is the leader in the cloud. linked in is an important

property. not only does it have a lot of members in this professional network, it also has a gross strategy that involves keeping those members more engaged on the platform through a purchase ed training platform where people can take courses online. that allows more engagement. it allows people to see okay, that person was able to learn these couple of things and advance in their career. that's a path for me to perhaps learn a similar thing. as you mentioned, there is gr p growth. >> i'm troying to understand this. you saying it's an important part of the cloud business. will it improve microsoft's standing, if you will, in the enterprise. is this something totally different? >> well, it could help in couple of ways. number one, linked in has a lot

of information on where people are working. what their positions are. who they're connected to. so in that way, in microsoft's office business with outlook people trying to contact each other to get business done, linked in could be a health. when it comes to the cloud, you often hear kind of the hotel and tendency analogy to drawn up if you have amazon or microsoft they have these data center capabilities in the cloud. they've got the huge expansion projects to build capacity. then they have to fill that capacity with something. and with linked in you've got a lot of people on it. you have a will the of activity on it. a lot of information about how people are connected. you have the training capability with other assets they're bringing online trying to get more video. if you get more of that flowing

you gate stronger business. you have this profitable or growing enterprise operating through the capabilities. >> and quick on the stock, you know, this stock back in february was trading at over $200. then dropped off. is this an opportunist effort by microsoft to take them out early? is this what is happening here? you see the drop off in february? >> caller: yes. you could call it opportunistic but this stock was below $100 a share for a short period of time back in february. i believe it was after the earnings report that was so disappointmenting. the shares rebounded since then. if this were a certain kind you might have expected to see a bid come sooner and for a lower price.

something, you know, in the 190s. that's in the arena where linked in was trading before. i think would have told you back then, boy, the evaluation was rich at that point. >> why so much of a premium? is it a situation where there were other suitors potentially involved? or they just feel like it's a much more valuable property as part of microsoft? >> caller: the key player of linked in is reid hoffmann. the chair. >> and shareholder. >> >> caller: yeah. he controls the outcome in this celebrati situation. i imagine microsoft being what it is is making a bid respecting the value that perhaps the shareholders in charge at linked in might feel is fair. >> caller: i would point out

that microsoft was not as embraced in silicon valley. not to say they didn't make deals. they did. linked in is one of the crown joels of the valley in this social cloud period. it's been expanding quite a bit. commercial real estate wise in silicon valley. it's an employer that has been able to attract -- >> are you saying it's a way for microsoft to expand the cool factor and make sure it's not getting overlooked or not used by the driving forces in silicon valley? >> caller: not only that but an indication that microsoft has more cool factor than it did in the past. this is not the sort of deal that up and coming company in silicon valley might have been expected to do with microsoft a few years ago.

>> there's little talk about the -- it says world leading professional cloud plus world's leading professional network. >>well, look, it's social, it is mobile, it is cloud. which is something i know that, remember, they've been saying over and over again. he's going to get to 18 billion in cloud very quickly. it's one of the reasons we heard they were going to buy sales force. it does jump start their effort to be in the cloud. this is also, i have to tell you it is cheap. it's cheap because that last conference call in february the one where they brought all of tech down at the same time. capita data came down, it was -- this was really about linked in saying that things were slowing on the web. it is truly is a breathtaking move by microsoft to be

accelerate their cloud strategy. in the last conference call microsoft did not do a good job. people felt the cloud strategy slowed. people thought you till i dutil slowed. nobody will say that after today. >> just trying to figure out how these things work and what duo s duo -- goes through it. i was glancing through old articles how microsoft was working with linked in to make sure it's improving security giving people ways to step up their security techniques after linked in's 117 million credentials g s leaked. you think of these things. it's just reaching out and making more inroads with some of the traditional technology tightens in silicon valley. >> i think they stalled. i mean, that last conference call was kind of an conflict for microsoft. they had gone full bore in cloud

azure but it looks like things plateaued there. windows plateaued. no one is going to say that after today. in terms of what they got linked in for. they got linked in for a price that was after, obviously, higher than it was for the last since february 3rd, but lower than it was when people felt that linked in had unbridled growth. i think microsoft can jump start the growth. i think it's a smart move for microsoft to use that cash which wasn't doing any good at all. no one cared microsoft had a 3% yield. it's the kind of thing to give sasha something to talk about. we're social and mobile and cloud. linked in is highly respected as being a company that had great potential in china. was plateaued. still doing well in the united states. i think they can make it into something bigger than it's been. it's very smart. i like it. microsoft in the last quarter

just was just such a weak quarter. and you're going to be looking forward to talk about this. >> and think about microsoft over the years. it's been a -- at this point, you know, we've talked about it for i don't know how many as we've been together. we've been talking microsoft. and he never really, you know, there were always rumors i'm going to do this or that. and think of all the start ups that turned into big things that microsoft had a chance to do something with and they never did. and that -- and you got the new guy and suddenly he's $26 billion. but i wonder there were whether it's sales force or, i mean, go back even further than that. they had millions of other or dozens of other opportunities to step out. >> then they had stuff like noki nokia. >> they never got into search the way they wanted to. and now it's like -- i don't

know. someone asks me i'm going to say it's a cloud. >> right. >> i don't know what it means. >> doing it for the cloud. it makes sense for the cloud and mobile. mobile and the cloud. that's what i'm going to say. >> yes. they had no social. they had no mobile. they were starting to get there. and the last two years they were moving aggressively into the cloud. they failed until the last say four or five months to be able to grow that. the leader oracle, for instance, this week talking about how fast their cloud is growing and business is growing. i know they were very interested? sales force. sales force was too expensive. this company is not that expensive. did they do well search? no. it's something we talk about a lot. no. you'll see sales force go down because now we know that microsoft is not going to buy sales force. that might be an opportunity. i think microsoft had to make an move. i think it's a brilliant move. i think sasha put himself into

the race again. >> jim, it does say microsoft this deal will not be until 2019. >> so what. so what. >> it really didn't matter. that last quarter was one of those quarters where you said wait a second. maybe it's more of a pc company. you will not think that after today. you like to think it was earlier than that. microsoft was -- they had the earnings but no price. now they may not have the earnings but higher price series. that's what they want to do. >> and financing the deal with debt. >> you can borrow. also, we'll pay you to take it. i know microsoft is being shrewd. they have a great balance sheet. they can do whatever they want. >> their own press release

microsoft put out jim has as a picture, i think we have know that we can show on-air. it's the picture of sasha in the middle and jeff weiner surrounding him. it highlights what you've been saying how people are not going to think -- >> that's not photo shopped, is it? >> it does look like photo shop but it came from the company. i can't imagine they photo shopped something. >> it's intelligently photo shopped. >> or it could be real. >> it's a good deal. >> i think he is doing a good job. we will not think of microsoft after today which is a pc company, which is important. just like intel is trying to get into apple, iphone, to be a pc company is just the kiss of death. >> jim, we're going to see you in a few minutes. >> thank you. >> it's something you'll be talking a lot about. >> very exciting. >> joining us now on the squawk newsline to talk about it is chief investment officer of

tygrrkst tygress. >> caller: i think it's a great deal. linked in is the ultimate business social platform. south. you have everybody on this from interns and college students up to the biggest ceos. this is a great way to connect with people in business, and this is a good way for microsoft to expand into social platform. in the beginning they missed social, mobile cloud, and this is a step in the right direction. they have a huge balance sheet, they have a lot of cash, and this also is, again, a low multiple company buying a high multiple company. even though they said it's not going to be accretive right away, i don't think it's going to be that negative, so it's a positive step and definitely is positive for the linkedin shareholders. >> this is a real company we're talking about. linkedin has earnings -- >> down $2. >> microsoft is down by 4%. that's a dow component. that will put pressure on the dow this morning.

linkedin, as you point out, though, is a social company with actual earnings. it's expected to earn $3.46 this year. what do you think about why microsoft shares are selling off right now? >> well, a lot of times in the choir it will sell off. some people are looking at this as -- i mean, it's not really selling off that much, so i don't think it looks like it's, you know, a couple dollars. >> you sound really positive on this. you think that this will pay off when, immediately in terms of not accretion, but in terms of dividends that it pays just by being more involved with the social company -- >> i think by market impact it will pay off for microsoft by connecting with more people, it will pay off for microsoft. and i don't think that this is their first transaction going in this direction. i think that there will be others. >> let me ask you a question, then, about that particular issue. twitter shares actually just off this news look like they're up in the premarket about 4.5%. you said you think this is just the beginning. what else do you think we should look at in terms of what might be on a shopping list?

>> i still don't view twitter as a great acquisition because i think that on a lot of other platforms, like linkedin, you can connect with a lot of people on the linkedin platform. also you can connect with a lot of people on facebook and on google. and all three of those companies have great brand equity, too, as the one thing that i think twitter has is brand equity. so, i don't think anybody really has to pay up to accomplish what they could do buying twitter when they can do it on these other platforms. >> so, but when you say this is just the beginning, what are you referring to? >> i think that they will expand more into the areas of social, mobile and big-data analytics and cloud. >> and then what do you put -- if that's right, what would you look at them picking up? >> i wouldn't count out doing something with sales force, because sales force is the premier cloud company -- >> it's down almost $3, crm. >> well, i mean because possibly think that that transaction may

not happen right away, but microsoft has the resources, they have the cash, they have the balance sheet, they have the borrowing ability to acquire a lot more. they've had a slow growing business for a while. they need to step it up. and acquisition's the one way to do that. and also, this still shows that there's value in the market and that m&a activity is still alive and well, which is positive overall for the market. >> who are the other big players that you think might be active when it comes to acquisitions? does this set off some sort of a bidding war between other companies over other properties? >> i don't think that there would be a bidding war in linkedin. i don't think anybody would want to go up against microsoft -- >> i'm not talking about linkedin, i'm talking about just in terms of other players feeling like they need a partner at the dance, too. >> well, there are a lot of companies that can be good partners, like microsoft, like google, like facebook, like apple. those are all great partners. and i think they can be game-changers even for leading

companies like linkedin. and i think that there's probably still a lot of talk that goes on in silicon valley about companies merging, but i think there's the four big partners -- facebook, apple, microsoft, google -- that have incredible balance sheets, a ton of cash, a ton of ability to raise cash. so i think that the acquisitions will continue. >> okay. ivan, we appreciate your perspective this morning. we're going to add julia boorstin now into the conversation. she's on the squawk news line. julia, what do you make of this this morning? >> reporter: well, it's interesting having covered linkedin for the last decade or so to see how they've changed and evolved and tried to move away from being a tool for people to find their next job. jeff wiener has talked a lot about how he wants this a tool for people's everyday work, whether it's for linda, for education, or using their various apps to track news. they want linkedin to be somewhere people go in the morning every day to get their news of the day about business. and it seems like that could be

an asset for microsoft incorporated into their tools like outlook. so it's interesting how linkedin itself has tried to pivot and expand and diversify with a family of apps. and i see how that could be appealing to microsoft. >> right. at any level do you say to yourself that linkedin, when you sell like this, do you say to yourself, can i grow as fast as i thought i could before? i mean, is this a signal -- >> reporter: i think it's because they haven't grown as fast as they hoped. if you look at a linkedin one-year stock chart, there's a dramatic drop-off in february. and if you recall at linkedin's earnings report, the company basically warned they weren't going to grow as fast as many analysts hoped. and their numbers were solid. they were still continuing their slow and steady growth, but it was the outlook that was really scaring wall street. and if you look at the dramatic drop-off, it was this concern, what's going to happen with the social network? it doesn't have the kind of growth of a facebook or any of these other networks -- >> the implication of the

question, though, is then what does microsoft see that the market doesn't? >> here's the thing, though, is that if microsoft can incorporate linkedin into its various business services, then perhaps it could sell more ads on linkedin or more premium subscriptions on linkedin. linkedin has three business models, one of which is advertising, the other is recruiting services, like a paid recruiting service, and the other is a premium service for regular consumers. and when it comes to the recruiting service or advertising, that's all about companies paying money. and if microsoft's going to be selling its tools to businesses, they could just bundle linkedin in there with that and make linkedin an add-on so they could sell more linkedin, you know, ads and services that way. >> we're going to take a quick break. i knew it, julia. the cloud, that's all i needed to know. the cloud. short break now. a roundup of today's top market stories when we come right back. throw in a little mobile. it's more than a network and the cloud.

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today's top stock to watch, you guessed it, this news we've been talking about, microsoft buying linkedin for $194 a share in cash. that is a good deal. you can see linkedin up 48%,

microsoft down about 3.2%. >> take one last look at the futures with dow component microsoft now trading down a little bit. we'll see if that's reflected. yeah, a little bit. we were down about 35 all session on the dow. we're now down 48, down 6 on the s&p, down 20 on the nasdaq. >> make sure you join us tomorrow. "squawk on the street" begins right now. good morning. a blockbuster deal in technology. microsoft buying linkedin in a $26.2 billion purchase. welcome to "squawk on the street." i'm carl quintanilla with jim cramer at the new york stock exchange. david faber's off. futures under some pressure this morning as the markets will weigh the tech news along with these new brexit polls and the mass shooting in orlando this weekend. pound's at a two-month low. the ten-year yield 1.61 and oil's near the low for the month. our top story, microsoft acquiring linkedin for